The son of William Blyth and his wife, Sarah Wilkins, he was born at Birmingham, England on 21 March 1823. His formative years were spent in Birmingham, and he was educated at King Edward VI Grammar School, and arrived with his parents in South Australia in 1839 on the "Ariadne" at the age of 16. His father, who was appointed a Justice of the Peace and became a Councillor of the City Corporation in 1840, and afterwards one of the City Commissioners,[2] established an ironmongery business in Hindley Street, Adelaide, which Blyth entered with his brother Neville. He interested himself in municipal work and was a member of the central road board. In 1855 he was elected for Yatala in the old legislative council and assisted in framing the new constitution.

Early in 1857 he was elected as one of the representatives of Gumeracha in the first house of assembly, and in August became commissioner of public works in the John Baker ministry which, however, was defeated on 1 September. On 12 June 1858 he was given the same position in the Hanson ministry, which remained in power until May 1860. In October 1861 he became Treasurer of South Australia in the Waterhouse ministry which, however, was reconstructed nine days later, when Blyth dropped out. He came back to the ministry, however, as Treasurer in February 1862, and was selected as one of the three representatives of South Australia at the intercolonial conference held in Melbourne in March and April of 1863.[3]

On 4 August 1864, Blyth, taking the positions of premier and commissioner of crown lands and immigration, formed his first ministry, but it was difficult to do useful work, much time being wasted in no-confidence motions. Blyth resigned on 22 March 1865, was Treasurer in the third ministry formed by Henry Ayers but was out of office again in little more than a month.

In March 1866 he became Chief Secretary in James Boucaut's first ministry from March 1866 to May 1867. He was Treasurer again in the first John Hart ministry in September 1868, but this ministry was defeated three weeks later. He took the position of commissioner of crown lands and immigration in the second Hart ministry, which lasted from 30 May 1870 to 10 November 1871, when Blyth formed his second ministry, but resigned only ten weeks later.

On 22 July 1873 he again became premier and this time took the portfolio of Chief Secretary of South Australia. This ministry was a comparatively stable one and lasted until June 1875. It succeeded in doing something for immigration, and after a stern fight passed a free, secular, and compulsory education bill through the assembly. This was defeated in the council. It succeeded, however, in passing an act incorporating the University of Adelaide. From 10 February 1875 to 21 February 1877 he represented North Adelaide.

On 25 March 1876 Blyth became Treasurer in the third Boucaut ministry which resigned less than three months later. In February 1877 he was appointed agent-general for South Australia in London and held the position capably for many years. He was a councillor of the Oxford Military College in Cowley and OxfordOxfordshire from 1876–96. He was a representative of South Australia at the 1887 colonial conference.

Blyth died in Bournemouth, England on 7 December 1891. His widow died two weeks later, on 21 December.[4]

Arthur's younger brother, Neville Blyth, had a significant political career, being first elected to the House of Assembly for the seat of East Torrens in 1860.

Arthur Blyth married Jessie Ann Forrest (1827–21 December 1891), a daughter of Edward Forrest of Birmingham, on 5 March 1850; she died two weeks after her husband.

Emily Grant Blyth (died 31 December 1926) married Robert Grant Murray R.N.R. on 23 August 1893

(John) James Neville Blyth (20 November 1850 – ), married Elizabeth Emma Hawker (daughter of James Collins Hawker and granddaughter of Thomas Lipson) on 11 June 1873. In 1885 he was jailed for a year for passing valueless cheques.[5] The couple divorced in 1908.

^"The liberty of Westover". A History of the County of Hampshire: Volume 5 (1912). Victoria County History. 1912. pp. 133–37. Retrieved 23 April 2007. [N]otable persons who have died here are ... Sir Arthur Blyth, premier of South Australia, in 1891.